Dynamics of a Start-up Ecosystem in Africa: A case study of Yabacon in Nigeria

There is a significant gap in the conceptualization of entrepreneurial ecosystems in developing economies of Sub-Saharan Africa. Despite its prominence and recognition as a global phenomenon, prominent research on entrepreneurial ecosystems maintains a central gaze on advanced economies in the Global North, with Silicon Valley in California as the inspiration. Only in recent times have a few promising strands of literature emerged with a focus on strategies to build entrepreneurial ecosystems in Sub-Saharan Africa. These studies come without references to the unique dynamics of ecosystems in institutionally challenged economies of sub-Saharan Africa. In the present study, I adopt an exploratory analysis of the software ecosystem in Yaba, Lagos, as a case study to underline traditional and unique elements that provide support to start-ups within the ecosystem. These distinctive elements such as protection from police brutality, a positive reputation, private learning centres and informality, exist as meso-level support to complement the traditional elements of the entrepreneurial ecosystem. Drawing upon existing literature on the formal-informal dichotomy, I further present informality as a unique element from which formally registered start-ups derive sustainability strategies. I contend that informal practices are institutionally preconditioned choices, caused by the abdication of the government’s responsibilities and exacerbated by counterproductive state interventions. I contribute a scaffold adapted from Mazzarols (2014) ecosystem framework to depict the core and peripheral elements that provide support to start-ups within the ecosystem. From this, I deduce an elliptical illustration of formality and informality as intervening factors to the support received by start-ups within the ecosystem